Debt counselling is exclusively there to help over indebted customers or individuals and not business. This is bad news for business owners who have signed surety for their business and are finding difficult times in the current economic slowdown.

It seems to be unfair for the NCA to exclude small businesses, because the person signing surety for the company is the business. The business is only the legal entity used to trade. Unfortunately this has been argued all the way to the Constitutional Court. The Constitutional Court still ruled that although the individual signed surety in personal capacity, this debt may not be included in debt counselling.

When the company defaults on credit agreements, the creditor will not even summons the company. The creditor will go straight to the person who signed surety and summons the individual.

What can the business owner do?

The business owner can still apply for debt counselling by including all debt in personal name. By paying less on personal debt, the business owner will free up some cash flow to channel to business. The owner will not have to draw so much money from his business to pay his personal monthly debt.

Contact us for more information on how to apply for debt counselling as business owner.